House prices fell back slightly month-on-month with a 0.6 per cent dip recorded in June, marking the fourth monthly value fall seen since last December, according to the latest Halifax house price index.
However, despite the small blip, the average house price is still around £10,000 higher than those recorded at the end of 2013 and is up 8.8 per cent annually – the largest year-on-year increase seen in the index since October 2007.
A year ago, house prices were increasing annually at less than half the pace they are now, by 3.7 per cent. The average house price reached £183,462 in June compared to £167,668 seen at the same point last year.
Price growth: Values have soared in last 12 months – but slowed slightly on a monthly basis in June
The latest 0.6 per cent monthly drop in property values marks a swing backwards from a giant month-on-month increase of four per cent recorded in May, when prices hit £184,566.
Halifax said month-on-month price changes can often be ‘volatile’ and its quarter-on-quarter measure of price fluctuations is a more reliable indicator.
This quarterly measure revealed the underlying direction for house prices is still pointing upwards. Property values between April and June this year were 2.3 per cent higher than they were between January and March.